Market Overview: Nifty 50 futures
The Nifty 50 futures ended March with a strong bull close in middle of trading range after 5-6 months of indecisive bars. Now the only thing bulls need is a good follow-through bar for continuing the trend again after a long halt, but the bears only need a weak bull close to continue in the trading range for more time.
Nifty 50 futures
The Monthly Nifty 50 chart
- General Discussion
- From September 2021 the market is still not able to test the all time high
- After the pandemic crash the market has seen a good recovery of around 150%
- Deeper into the price action
- NIFTY 50 moved to higher levels with very good bull closes
- Market moved higher with no consecutive bear bars
- Whenever market shows this type of move always remember never sell
- In these types of move you always have to enter on a High 1 or High 2
- Patterns
- After the pandemic bottom market has given a measured move target (marked with blue color)
- NIFTY 50 has also had 3 legs up which clearly tells us market is near the top of a wedge or channel (see the red numbers)
- NIFTY 50 has also given Leg 1 = Leg 2 measured move
- Market is currently trading in a trading range
- Pro Tip (I am not a pro 😅)
- Whenever you see two legs to upside (with strong bull closes in the two legs) then you can buy High 1 or High 2 from the third leg up
- Whenever you see market giving candles with too many tails then avoid entering long / short for some time as this suggests that market is just in a trading range
The Weekly Nifty 50 chart
- General Discussion
- From the last two months the market is forming strong consecutive bear bars as well as bull bars
- Limit order bulls buying at the swing lows
- Deeper into price action
- Limit order bulls are able to make money by buying at the swing lows and whenever this happens there are two possibilities…
- If the above structure occurs after strong bull trend and market has already spent time going sideways (like here) then there are higher chances that bulls would be able to get a trend resumption 60% – 70% of the time.
- If above structure occurs in weak bull market then higher chance that bears would be able keep the market going sideways or even make the market trend downwards
- Bulls buying near the swing lows are taking their profits before the SWING HIGHS and this is the sign that bulls are not confident for a bull trend and they assume that market would still be in a trading range
- Limit order bulls are able to make money by buying at the swing lows and whenever this happens there are two possibilities…
- Patterns
- Market completed a measured move target of a rising wedge due to which PROFIT taking came and thus market went sideways
- Market has now entered a downwards expanding triangle
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